Luxury vehicle segments have on average faced the biggest depreciation heading into fall over the last 10 years, according to an analysis of Black Book data.
Since 2006, the prestige luxury car segment led with a 5.63% decline in value, which was followed by luxury cars (down 5.23%), full-size luxury CUV/SUVs (4.83%), and mid-size luxury CUV/SUVs (4.83%).
Last year, prices for the prestige luxury cars segment dropped 5.9%, and in 2009 prices saw their largest three-month plummet of 10.6%. Vehicles in this category include the Audi A8; BMW 7-Series; Lexus LS/SC; Mercedes-Benz 400, 420, 500, 600; and the Porsche Panamera.
Luxury cars, full-size luxury CUV/SUVs, and mid-size luxury CUV/SUVs are the segments that have seen the next-highest depreciation entering the fall season.
“Dating back to 2006, we have seen a number of factors contribute to the rise and fall of used-vehicle prices, many of which are supply- and demand-related,” said Anil Goyal, Black Book's senior vice president of automotive valuation and analytics. “When looking at the three-month retention average among all segments entering fall over the last ten years, many of the hardest-hit vehicles are in the luxury segments, which have struggled with retention strength due to increasing supply levels and higher MSRPs, which can lead to more volatile retention swings during this time of the year. What’s more, many of these luxury vehicles are now seeing slightly lower demand as car shoppers look to less expensive non-luxury vehicles that now offer technology and features that rival that of luxury types.”
Full-size pickups and small pickups have seen the highest retained values in the three months entering fall.
Originally posted on Auto Rental News